Liz Russell's presentation from alt.consulting at 2014 Lender's Meeting at Arkansas State University in Jonesboro, Arkansas.

1. Jonesboro Lenders’ Meeting
ASU Delta Center for Economic Development
May 20, 2014

2. Background
 1998: Launched to provide intensive managerial assistance to small
businesses in rural and minority communities
 2010: Began making small business loans
 2011: Certified as CDFI by U.S. Treasury
 2014: Twelve full-time professional employees in four offices
We are a catalyst for community and economic growth. We work
with businesses, nonprofits, government and other partners to
help entrepreneurs and small businesses achieve their dreams.

3. alt.Consulting
 Four offices
o Memphis
o Jonesboro
o Pine Bluff
o North Little Rock

5. The Numbers
 42 loans
 Total loaned $594,156.30
 Average loan size of $14,147
 Size range $500 to $50,000
 One loss to date ($5,000)
 Average credit score: 624
 67% to rural businesses
o 20 loans to startups
o 18 loans to growth businesses
o 4 loans to turnaround businesses

6.  Free Initial Assessment
o We go to the business and meet the owners where they are
 Scope of Services
o Clearly outline engagement, deliverables, hours and cost
o Engagements range from 10 to 100 hours!
 Connections to Other Resources
o Credit counseling
o Banks and credit unions
o Veterans programs
o Training and procurement programs
o State and regional programs
Consulting

7.  More than 40 tools designed for small businesses. The tools
most used with our clients are:
o Accounting Systems: Identify and implement the right accounting
system
o Financial Projections: Forecast business performance, expansion,
planned changes, etc.
o Marketing Plans: Identify and access market opportunities
o Strategic Plans: Three-year plan with clear action steps
o Business Plans: Detailed business analysis
o Feasibility Analysis: Determine feasibility before investing
o Loan Packaging: Presentation to lenders
Consulting Services

8. Loan Funds
Loans - $500 to $50,000
 SBA Microloan Program
 USDA Intermediary Relending
Program (IRP)
 USDA Rural MicroEntrepreneur
Assistance Programs (RMAP)
 Iberia Bank Loan Fund
 Special Loan Funds

9. Business Loan
Microloan
Credit Builder
Accounts
Capacity
Building &
Problem
Solving
Working with Community Banks

10.  Utilize pre-loan technical assistance to identify and address
business risk:
o Work one-on-one with client to develop business model
o Develop integrated financial model
o Average engagement is 40 hours
 Address the personal risks:
o Credit builder accounts with banks and credit unions
o Credit counseling and monitoring
o “How to get a Loan” workshops and training
o Feasibility training for startup
o IDAs where available
Managing Risk (Pre-Loan)

11. Managing Risk
 Loan amounts based on financial model
 Risk Mitigation – ADFA CAP, AEDC Guaranty, DHS Guaranty
 Monitoring agreement is signed at loan closing
 All payments automatically drafted
 New engagements as needed

12. Skateland
Pine Bluff
Business Acquisition
• Purchased with owner financing
and working capital loan
• Market study overcame resistance
to industry
• Opportunity to provided needed
service in hometown
• After three years obtained
financing to pay off owner’s note
• 7 employees
• Planning expansion

13. Meineke Car Care Center
Pine Bluff
Business Acquisition
• Owner was selling business to
move to another state
• Buyer had worked as shop manager
• Owner provide a portion of the
financing
• alt.Consulting provided a bridge
loan for the franchise training first
and then the additional financing
needed to complete the business
transition
• Saved 5 local jobs in Pine Bluff and
continues to provide tax revenue
for city

14. Partnership Opportunities
 Turndowns
 Problem Loans: cannot make payments, cash flow problems
 Clients who are ready to retire
 Refer to alt.Consulting
 Contact us first when possible
 Let customer know they will be hearing from us

15. www.altconsulting.org
liz@altconsulting.org
Thank You!
Pine Bluff, AR
211 West 3rd Ave.
Suite 245
P.O. Box 9858
Pine Bluff, AR 71611
870.535.0011
Memphis, TN
516 Tennessee Street
Suite 234
P.O. Box 40210
Memphis, TN 38104
901. 312.9797
Jonesboro, AR
319 University Loop
West
Suite 220
P.O. Box 16264
Jonesboro, AR
72403
870.680.8285
North Little Rock, AR
516 Pershing Blvd
North Little Rock, AR
72114
Phone: 501-352-3400
Presented by:
Liz Russell, Loan Specialist